Co-op secures site for £12m warehouse
Tulchan Developments, advised by Montagu Evans, has agreed the pre-let of a new facility for Co-operative Group at Link Park, Newhouse, on the M8 east of Glasgow.
The project will be brought forward in a joint venture with landowner Fusion Assets, the arm’s length property development and regeneration company of North Lanarkshire Council. Forward funding for the c.£12 million facility is being provided by an overseas investor.
Co-op has taken the 47,565 sq ft distribution facility with enhanced specification and additional service yard and HGV parking on an 18-year lease at £12.15 per sq ft. Located next to its main 500,000 sq ft Glasgow distribution centre, construction has now started with completion planned for October.
Fusion Assets acquired the seven-acre brownfield site in 2014 and completed a package of enabling works funded by the Scottish Government through the North Lanarkshire Vacant and Derelict Land Programme to create a fully serviced and development ready site. A procurement exercise to find the right development partner was caried out last year to allow the occupier to have the facility available this year.
Gavin Robertson, director at Tulchan Developments, said: ”This is the second unit we’ve been involved in for Co-op with Newhouse providing a key part of their overall logistics network in Scotland going forward.’’
Bryce Stewart, Partner at Montagu Evans, said: ”With an increasing shortage of industrial and logistics stock across Scotland, this will be the first of many pre-lets over the coming months as demand for space continues to grow.’’
The existing depot already serves around 600 Co-op stores and this new facility strengthens Coop’s core logistics operation in North Lanarkshire.
Montagu Evans advised Tulchan Developments on the leasing and forward funding. Colliers advised Fusion Assets. Matthews & Goodman advised Co-op on the letting. Lismore acted for the overseas investor on the forward funding.